RCS - Innodata Inc. - Innodata Awarded $44M Annualized Run Rate Programs

InnodataAnnouncement

03/06/2024 14:45

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RNS Number : 7534Q  Innodata Inc.  03 June 2024

Innodata Awarded New Programs from "Magnificent Seven" Big Tech Customer
Valued at Approximately $44 Million in Annualized Run Rate Revenue

NEW YORK, NY / ACCESSWIRE / June 3, 2024 / Innodata Inc
(https://pr.report/bf6uAzy7) . (NASDAQ:INOD), a leading data engineering
company, today announced that it has been awarded two new large language model
(LLM) development programs by one of its existing "Magnificent Seven" Big Tech
customers. Innodata anticipates that the new programs, once ramped up, will
together result in approximately $44 million of additional annualized run rate
revenue. These awards are in addition to the new programs and program
expansion with this customer Innodata announced on April 24 and May 7. While
Innodata's agreement with this customer contains early-termination-upon-notice
provisions, Innodata believes this customer is committed to a significant,
multi-year LLM strategy from which Innodata stands to benefit.

"We are very excited to announce having been awarded these significant new
programs," stated Jack Abuhoff, Innodata CEO. "Moreover, we are in discussions
with the customer about additional potential programs and expansions."

Abuhoff continued, "In awarding us these new programs, the customer reiterated
its confidence in the high-quality demonstration data that Innodata has been
producing at scale for instruction-tuning the customer's LLM models and the
value its AI engineering teams place on collaborating with Innodata.
Increasingly, our customers share with us that no single factor has as much
influence on LLM performance as the quality of customized data for supervised
fine-tuning. Trained with high-quality data, LLMs will perform more
accurately, with enhanced contextual understanding, better adaptability, and
reduced bias. We are continuing to develop advanced capabilities to ensure
that our LLM training data is engineered with a firm grasp of the intricacies
of language and in ways that best support advanced LLM functionality and
reasoning."

For more than 30 years, Innodata has been supporting companies that rely on
high quality data for products and operations. Today, Innodata is supporting
several of the largest technology companies as they develop generative AI
offerings, as well as leading enterprises seeking to harness the capabilities
of generative AI within their operations and products.

"It is truly exciting that we are now able to utilize our capabilities in
scaled data to play a part in the LLM revolution. We believe that there is an
enormous growth opportunity in front of us," Abuhoff concluded.

About Innodata

Innodata (Nasdaq: INOD) is a global data engineering company delivering the
promise of AI to many of the world's most prestigious companies. We provide
AI-enabled software platforms and managed services for AI data
collection/annotation, AI digital transformation, and industry-specific
business processes. Our low-code Innodata AI technology platform is at the
core of our offerings. In every relationship, we honor our 30+ year legacy
delivering the highest quality data and outstanding service to our customers.
Visit www.innodata.com to learn more.

Forward-Looking Statements

This press release may contain certain forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and
Section 27A of the Securities Act of 1933, as amended. These forward-looking
statements include, without limitation, statements concerning our operations,
economic performance, financial condition, developmental program expansion and
position in the generative AI services market. Words such as "project,"
"believe," "expect," "can," "continue," "could," "intend," "may," "should,"
"will," "anticipate," "indicate," "predict," "likely," "estimate," "plan,"
"potential," "possible," "promises," or the negatives thereof, and other
similar expressions generally identify forward-looking statements.

These forward-looking statements are based on management's current
expectations, assumptions and estimates and are subject to a number of risks
and uncertainties, including, without limitation, impacts resulting from
ongoing geopolitical conflicts, including between Russia and the Ukraine,
Hamas' attack against Israel and the ensuing conflict and increased
hostilities between Iran and Israel; investments in large language models;
that contracts may be terminated by customers; projected or committed volumes
of work may not materialize; pipeline opportunities and customer discussions
which may not materialize into work or expected volumes of work; the
likelihood of continued development of the markets, particularly new and
emerging markets, that our services support; the ability and willingness of
our customers and prospective customers to execute business plans that give
rise to requirements for our services; continuing reliance on project-based
work in the Digital Data Solutions (DDS) segment and the primarily at-will
nature of such contracts and the ability of these customers to reduce, delay
or cancel projects; potential inability to replace projects that are
completed, canceled or reduced; our DDS segment's revenue concentration in a
limited number of customers; our dependency on content providers in our
Agility segment; the Company's ability to achieve revenue and growth targets;
difficulty in integrating and deriving synergies from acquisitions, joint
ventures and strategic investments; potential undiscovered liabilities of
companies and businesses that we may acquire; potential impairment of the
carrying value of goodwill and other acquired intangible assets of companies
and businesses that we acquire; a continued downturn in or depressed market
conditions; changes in external market factors; changes in our business or
growth strategy; the emergence of new, or growth in existing competitors;
various other competitive and technological factors; our use of and reliance
on information technology systems, including potential security breaches,
cyber-attacks, privacy breaches or data breaches that result in the
unauthorized disclosure of consumer, customer, employee or Company
information, or service interruptions; and other risks and uncertainties
indicated from time to time in our filings with the Securities and Exchange
Commission.

Our actual results could differ materially from the results referred to in any
forward-looking statements. Factors that could cause or contribute to such
differences include, but are not limited to, the risks discussed in Part I,
Item 1A. "Risk Factors," Part II, Item 7. "Management's Discussion and
Analysis of Financial Condition and Results of Operations," and other parts of
our Annual Report on Form 10-K, filed with the Securities and Exchange
Commission on March 4, 2024, as updated or amended by our other filings that
we may make with the Securities and Exchange Commission. In light of these
risks and uncertainties, there can be no assurance that the results referred
to in the forward-looking statements will occur, and you should not place
undue reliance on these forward-looking statements. These forward-looking
statements speak only as of the date hereof.

We undertake no obligation to update or review any guidance or other
forward-looking statements, whether as a result of new information, future
developments or otherwise, except as may be required by the U.S. federal
securities laws.

Company Contact

Marcia Novero

Innodata Inc.

Mnovero@innodata.com

(201) 371-8015

SOURCE: Innodata Inc.

 

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